Hello Friends,
Today Xcel Energy presented its future plan for energy production in Minnesota to the Public Utilities Commission. The plan was designed to comply with the Obama/EPA mandates under the Clean Power Plan. Governor Dayton and the DFL are strong supporters of these mandates.
Many have asked what that will mean for Central Minnesota.
Well, here it is.
In 2023 Sherco Unit 2 will be shut down.
In 2026 Sherco Unit 1 will be shut down.
In 2026 Sherco Unit 2 will be converted to gas.
Xcel Energy is committed to continue to provide high pressure steam to Liberty Paper in Becker.
By 2030 the Monticello nuclear plant's license will expire. Governor Dayton and the DFL have rejected our attempts to lift the ban on new nuclear expansion.
By 2033 the Prairie Island nuclear plant's license will expire. Governor Dayton and the DFL have rejected our attempts to lift the ban on new nuclear expansion.
Without further action, we will not have enough power plants to meet the needs of our state. The Governor and the DFL have never presented any plan, to my knowledge, to replace these plants and the energy load they produce.
Shutting down Sherco Units 1 and 2 will eliminate about 150 full-time jobs.
Xcel has informed me that many of these job eliminations will be by attrition and retirement. The rest will be reassigned to other areas within Xcel.I am relieved at the news that the people, currently employed will be able to remain employed if they do not retire. I am also relieved that creating a new gas plant will ensure some form of property tax base for the City of Becker.
However, the fact remains that these 150 jobs will not be replaced with new workers as they would be if the plant were to continue its normal operation. That means 150 fewer good-paying job opportunities for families in our area. The economic impact will be a staggering blow to Central Minnesota.
The standard formula is 4 service jobs are connected to every production job.
We could see up to 600 total jobs lost because Governor Dayton and the DFL support the Obama/EPA mandates.
And what for?
Eliminating Sherco 1 and 2 will have a negligible effect on our climate. Almost half of the states in the union have openly challenged the Obama / EPA plan. Many will continue their legal efforts to oppose it.
Why?
Because the Obama/EPA power mandates will force power plants to shut down. It will force people out of their jobs. It will force the cost of energy to skyrocket, and reduce reliability of our energy grid.
Finally, it will not affect the climate.
The Obama/EPA power plan is simply a second attempt to force through crippling energy policies that will put certain power sources out of business. The first attempt—Cap and Trade—failed in the U.S. Senate about six years ago. They couldn't pass it then, so they're doing it by administrative rule instead.
This unfortunately seems to be on the path to success - at least in Minnesota.
The Obama / EPA mandate is going to cost rate payers untold billions of dollars.
At the Jobs and Energy hearing, last week, I publicly reached out to Governor Dayton, on behalf of our state, to reconsider the damage that is about to take place to our energy communities and to rate payers. I hope he and our Attorney General will join other states in the fight against these costly and harmful regulations.
We are still waiting for a response.
God's peace,
Jim